Activity rate for the batch setup activity cost pool
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Anesni Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Activity Cost Pools (and Activity Measures) Estimated Overhead Cost
Machine related (machine-hours) 242,100
Batch setup (setups) 713,900
General factory (direct labor-hours) 256,500
Expected Activity
Activity Cost Pools Total Product X Product Y
Machine related 9,000 6,000 3,000
Batch setup 11,000 6,000 5,000
General factory 9,000 1,000 8,000
Reference: 8-14
The activity rate for the batch setup activity cost pool is closest to:
119.00
110.20
64.90
142.80
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Solution Summary
This provides the steps to compute the activity rate for the batch setup activity cost pool
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